End-to-end logistics company DP World is increasing its financial incentive to encourage its supply chain partners to explore, trial and transition to rail as a lower carbon alternative for their UK supply chains.
DP World which operates in 78 countries, handles 10 per cent of world trade, and is now increasing its incentive by almost 50 per cent to £100 for customers taking part in its ‘Modal Shift Programme’, being trialled at its Southampton site for 12 months.
Introduced last September, the scheme is designed to increase the attractiveness of intermodal rail for customers through considered financial incentives.
DP World says that its programme, ‘has the potential to prevent an estimated 30,000 metric tonnes of carbon dioxide being emitted per year, more than three times the total emissions of DP World’s logistics hub at Southampton.’
Early indications show that up to 4,000 tonnes of CO₂ have been mitigated so far through the increase in rail usage, with its investment in British rail via its two UK hubs removing approximately 300,000 trucks off the road each year.
Since the announcement of the Modal Shift Programme, rail services uptake at Southampton has increased from 21% (January to June) to 27% (September to December) last year, particularly across the Midlands rail network.
The uptake has been bolstered by the reintroduction of a daily rail service from Southampton to South Wales, along with the implementation of final mile deliveries using electric vehicles.
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